Britain has proposed an initiative for European states to create a “supranational” fund aimed at centralized procurement of military equipment, stockpiling weapons, and financing rearmament. This was reported by the Financial Times. The new fund is expected to attract financing on favorable terms in financial markets, provide loans for military projects, and carry out direct weapons purchases.
This is reported by Finway
Although the exact amount of funding has not been announced, it has been indicated that there is a serious deficit in defense spending in Europe, estimated in the hundreds of billions of euros. This deficit could be offset by the new financial instrument.
The proposed fund would allow participating countries to purchase weapons without burdening their national budgets, as the financing for purchases would occur through loans and guarantees. Planned purchases may include ammunition, spare parts for tanks and aircraft, air defense systems, and more.
However, some European governments are approaching this initiative with caution. One official described the idea as “impractical,” noting that its implementation could take a long time. Another official emphasized that the European Union is already working on establishing its own defense fund worth €150 billion.